A bipartisan group of senators asked U.S. Trade Representative Robert Lighthizer to secure better access for pecan exporters to India as the two countries negotiate a trade deal. In a Sept. 20 letter, the senators urged Lighthizer to work to remove the “existing barriers” pecan exporters are facing, including a 36 percent Indian import tariff, compared with 10 percent tariffs on pistachios and almonds.
Export Compliance Daily is providing readers with some of the top stories for Sept. 16-20 in case they were missed.
Senate Finance Committee Chairman Chuck Grassley, R-Iowa, said tariffs on autos are not related to national security. When asked to respond to news reports that the U.S. and Japan could not finish a deal because the U.S. was not willing to promise to spare Japanese autos from those tariffs, he said, "The president ought to give that assurance and get this show on the road."
Japan will eliminate or reduce tariffs on $7.2 billion of U.S. food and agriculture exports under a mini-deal with the country that the administration says replicates the agricultural access the U.S. would have received if it had joined the Trans Pacific Partnership. The U.S. Trade Representative announced the deal without saying when the agreement will come into effect. It does not require a vote of Congress to be ratified.
Mid-level negotiations between Chinese negotiators and Office of the U.S. Trade Representative staffers on Sept. 19 and 20 were productive, USTR announced after the close of business on Sept. 20. "The United States looks forward to welcoming a delegation from China for principal-level meetings in October," the announcement said.
The promise of good news for farmers in the U.S.-Japan trade deal is oversold, five Democrats told U.S. Trade Representative Robert Lighthizer, as they complained in a letter about how the deal was negotiated without keeping Congress in the loop.
House Ways and Means Committee Chairman Richard Neal, D-Mass., said that the two sides made progress again on edits to the U.S.-Mexico-Canada Agreement when they met Sept. 20. "Once issues are resolved, they're going to come off the table, and we're not going to revisit them as we proceed to the next one," Neal said. He said the Democrat working group he leads will have a written response for U.S. Trade Representative Robert Lighthizer next week, when they meet again.
House Ways and Means Committee Chairman Richard Neal, D-Mass., who leads the working group that aims to win changes to the NAFTA rewrite to make it more palatable to Democrats, said that "it's time to pick up the intensity of the negotiations" with the administration. "I would prefer now that the pace pick up," he said in an interview on Sept. 19, the day before the working group was to meet with U.S. Trade Representative Robert Lighthizer for the first time since they received a counterproposal from him.
Rep. Dan Newhouse, R-Wash., sent a letter to U.S. Trade Representative Robert Lighthizer asking him to prioritize the removal of Section 232 retaliatory tariffs from India, which have resulted in a 70 percent tariff on U.S. apples in that country. Before the U.S. hit Indian steel with 25 percent tariffs, U.S. apples were taxed at 50 percent in India. India held off on retaliation for more than a year, but when the U.S. announced it would terminate India's eligibility for the Generalized System of Preferences benefits program, it responded in kind (see 1906170053).
Legislative discussions continue for how to shape legislation in order to regain control of trade policy from the Trump administration as the legislative branch is further pushed to the sidelines, a former senior U.S. trade negotiator said. Barbara Weisel, former assistant U.S. trade representative for Southeast Asia and the Pacific, said Congress is beginning to question how it can retake its constitutionally granted powers over trade, which have been overtaken by the Trump administration and its preference for bilateral negotiations. “One has to believe there are many members of Congress now who are debating and quietly discussing how they are going to adjust this issue,” Weisel said during a Sept. 17 event at the Brookings Institution in Washington, focused on the "America First" trade policy with regard to Japan and Taiwan. “And I think it’s about time.”